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Wallenius Wilhelmsen Logistics executives face bribery charges
THREE executives of Norwegian-Swedish shipping company, Wallenius Wilhelmsen Logistics AS (WWL), have been indicted on charges of bid rigging and price fixing in the automobile shipping market, the US Justice Department's (JOD)federal court in Baltimore revealed.
The trio include two former executives, Anders Boman and Arild Iversen, and current executive Kai Kraass. They have been charged with "participating in a long-running conspiracy to allocate certain customers and routes, rig bids, and fix prices for the sale of international ocean shipments of roll-on/roll-off cargo to and from the United States and elsewhere," including at the Port of Baltimore, according to the DOJ.
Special agent in charge Gordon B Johnson said in a statement: "These indictments are the continuation of a long-term effort by the FBI's Baltimore Field Office to secure our nation's economy against collusion in the shipping industry, to ensure competition in the market place and to protect US companies from these deceptive practices."
The indictment which was revealed recently alleges that Mr Boman, Mr Iversen and Mr Kraass conspired with their competitors to allocate certain customers and routes for the shipment of cars and trucks, as well as construction and agricultural equipment, the American Shipper reported.
The defendants accomplished their scheme by, among other things, attending meetings in Baltimore County and elsewhere during which they agreed not to compete against each other by refraining from bidding or by agreeing on the prices they would bid for certain customers and routes, the DOJ alleges.
In addition, the DOJ has said Mr Boman, Mr Iversen, and Mr Kraass agreed with competitors to fix, stabilise, and maintain rates charged to customers of international ocean shipping services.
A federal grand jury returned the indictment in November 2016, but it remained sealed until June 27, according to the DOJ.
A total of 11 executives have been charged in the investigation to date. Four have pleaded guilty and been sentenced to serve prison terms, while others remain international fugitives. WWL has pleaded guilty and in July 2016 was sentenced to pay a fine of nearly US$99 million. Three other companies have also pleaded guilty, resulting in total collective criminal fines of over $230 million.
The trio include two former executives, Anders Boman and Arild Iversen, and current executive Kai Kraass. They have been charged with "participating in a long-running conspiracy to allocate certain customers and routes, rig bids, and fix prices for the sale of international ocean shipments of roll-on/roll-off cargo to and from the United States and elsewhere," including at the Port of Baltimore, according to the DOJ.
Special agent in charge Gordon B Johnson said in a statement: "These indictments are the continuation of a long-term effort by the FBI's Baltimore Field Office to secure our nation's economy against collusion in the shipping industry, to ensure competition in the market place and to protect US companies from these deceptive practices."
The indictment which was revealed recently alleges that Mr Boman, Mr Iversen and Mr Kraass conspired with their competitors to allocate certain customers and routes for the shipment of cars and trucks, as well as construction and agricultural equipment, the American Shipper reported.
The defendants accomplished their scheme by, among other things, attending meetings in Baltimore County and elsewhere during which they agreed not to compete against each other by refraining from bidding or by agreeing on the prices they would bid for certain customers and routes, the DOJ alleges.
In addition, the DOJ has said Mr Boman, Mr Iversen, and Mr Kraass agreed with competitors to fix, stabilise, and maintain rates charged to customers of international ocean shipping services.
A federal grand jury returned the indictment in November 2016, but it remained sealed until June 27, according to the DOJ.
A total of 11 executives have been charged in the investigation to date. Four have pleaded guilty and been sentenced to serve prison terms, while others remain international fugitives. WWL has pleaded guilty and in July 2016 was sentenced to pay a fine of nearly US$99 million. Three other companies have also pleaded guilty, resulting in total collective criminal fines of over $230 million.
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